"Profiting From the Coming Oil Crisis" (This is from Option Investor.com. I only post because he brings up some interesting points about the energy sector. Of course the author then goes on to promote subscribing to OptionInvestor.com to get the full report. I like the service but it may not be for everyone.)
What does that really mean? We are facing an oil crisis over the next several years that will not go away. We can ignore it and pretend it does not exist but it will still happen. The world is reaching the point where we will not be able to pump enough oil to satisfy the demand. The recent supply disruption caused by Hurricane Ivan showed us that the problem is real and it is lurking right around the corner.
The disruption eliminated 1.5mbpd from the normal supply chain for nearly a month. According to the analysts OPEC should have been able to just open the spigot and let more oil flow. Instead with OPEC pumping every drop they could manage the problem did not get resolved until the supply from the Gulf of Mexico was restored. Disaster was averted but only for a short time. The October panic caused serious questions to be asked about OPEC supplies and the rising global demand.
These questions had been around since the 1970s but everyone always thought the answer was still decades away. Even the government is telling us not to worry there is no supply problem despite the glaring facts.
The facts are clear for anybody willing to do the homework. One day soon, possible as early as 2007, the world supply of oil could begin to decline. After 150 years of pumping countless billions of barrels out of the earth the oil gauge is tilting toward dry.
We are not running out of oil. That will not happen until sometime late this century. What we are running out of is cheap oil. Once production begins to decline it will do so at a moderate pace but once there is not enough to go around it becomes a sellers market not the buyers market we have today. We saw $55 oil when there was only a small shortage for only three weeks. What will a permanent shortage? It will begin slowly at maybe 100,000 barrels a day then 150,000 etc. The only problem is it will never come back. There may be fluctuations where new supply comes online or demand dips for a month but the long-term outcome is still the same. Once oil production peaks and begins to decline it is a one-way trip. If you thought $55 oil was high then $75 or even $100 oil is really going to be scary and it will eventually go higher.
The simple reason is there is nothing to replace it with. Your car will not run on solar and airplanes only guzzle jet fuel. There is no replacement. Once the production peak passes the world will have to start learning to live on less. The price you pay for gas will be dependent on how high American or United wanted to bid for oil to keep their planes flying that month. $5 a gallon, count on it and that is only for starters.
"Profiting From the Coming Oil Crisis"
As wise investors we have the opportunity to profit from this coming crisis. Already institutions and hedge funds are moving into strategic investments to profit from $75 oil. It is not the investments you would expect.
I have spent the last several months analyzing over 350 energy stocks and stocks that will be impacted by the coming energy decline. This investor guide outlines which ones to buy, which ones to sell and which ones to avoid.
I have compiled information on each and every one that highlights the right place to be and the places to avoid.
Did you know that the top ten dividend stocks in the energy sector average well over a 10% yield. That is not only amazing but it is going higher as well as the stock prices.
In this guide you will not only get my top ten oil recommendations from those 350 stocks but my research papers as well on all 350. I have compiled a spreadsheet by sub sector within the energy sector that includes symbol, price, volume, dividend and description of each stock. This is all categorized for you.
I have also included a Qcharts workspace with all 350 stocks also broken apart by sub-sector. All you have to do is click and scan.
My "Profiting From the Coming Oil Crisis" special investor guide is only available with the End of Year Renewal special from Option Investor.
I firmly believe that any of the top ten recommendations could not only pay for your subscription price but will insulate you from the very high gas prices to come. The early bird always gets the worm and it is time for us to step in front of the herd and position ourselves for the coming profits.
"A deeply religious man,such as White, doesn't take steroids"...LOL!!!!!!!!!!That's funnier than every episode of 'Friends' I ever saw(less than five).<g>